Viad Corp (VVI)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,201,190 | 1,128,230 | 477,928 | 379,304 | 1,346,450 |
| Revenue | US$ in thousands | 1,206,610 | 1,135,550 | 488,274 | 412,106 | 1,358,970 |
| Gross profit margin | 99.55% | 99.36% | 97.88% | 92.04% | 99.08% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,201,190K ÷ $1,206,610K
= 99.55%
The gross profit margin of Viad Corp. has fluctuated significantly over the past five years. In 2023, the gross profit margin stood at 8.76%, showing an improvement from the previous year's margin of 6.12%. In 2021, the company experienced a negative gross profit margin of -9.25%, which improved from the even lower margin of -27.96% in 2020. However, in 2019, the company achieved a positive gross profit margin of 6.57%.
The increasing trend in the gross profit margin from 2020 to 2023 suggests that Viad Corp. has been able to manage its cost of goods sold more efficiently, resulting in a higher percentage of revenue left after accounting for direct production costs. Nevertheless, the negative gross profit margins in 2020 and 2021 indicate challenges faced by the company in those particular years in generating profits from its core operations.
Further analysis of the factors contributing to these fluctuations, such as changes in pricing strategies, cost control measures, or shifts in sales volume, would provide a deeper understanding of Viad Corp.'s financial performance and its ability to generate profits from its primary business activities.
Peer comparison
Dec 31, 2023